3D MakerJet became the latest 3D Printing company to become publicly listed. The startup joined the US OTC market in October 2015 with the symbol MRJT. 3D MakertJet is based in Orlando. It is a reseller of the machines manufactured by ZBOT, the Guangzhou based 3D Printer manufacturer. Currently its range of 3D Printers is limited to plastic filament based printers (Originator i1, Originator i2, Originator 20, Originator 35). 3D MakerJet surprised the market in early 2016 with a statement on the release of a powderless wire-feed metal 3D Printer to be available for sale in the second half of 2016. The Metal 3D Printer will be manufactured by ZBOT and distributed in the US by 3D MakerJet.
What do we know about 3D MakerJet?
The company is located 4303 Vineland Rd. F2, Orlando, Florida 32011, and is leasing a property of 1,933 square feet for $2K a month. It has 3 employees: John Crippen, Christopher Alden and Taylor Touchette. John is the only director. His salary is $84K.
From 2009 to 2010, Mr. Crippen was a consultant at Business Planning Group in Orlando, Florida, providing assistance to companies in the areas of real estate, finance, technologies, and benefits packages. He received his Bachelor of Arts degree in Literature from NYU.
Total shares outstanding are 132M, and the market capitalisation is $30M. The company is majority owned by a firm called Market Milestones, a news company from Lake Tahoe, that highlights interesting developments in the world of business. Market Milestones is owned by Taylor Touchette. Jason Zeng from Toronto is another significant shareholder in 3D MakerJet, since
Poor finance, Poor management, Poor Organisation
3D MakerJet had barely no revenues in 2015, and very limited cash available. Operations have been financed by issuing tranches of a 15% annual rate 1 year convertible note, convertible into common stock at the conversion price of $0.001 per share. Taylor Touchette, an employee and beneficial owner of Market Milestones Inc., owns $237K of convertible notes. Total outstanding convertible debt was $775K at end January 2016. Net assets were negative to the tune of $800K.
In a nutshell the company is in dire state, with no cash resources, no revenues,a management team with very limited expertise in technology and 3D Printing, and a highly dilutive convertible debt. The latest quarterly report by the company indicated also some significant weaknesses in the financial organisation of the company. It is stated: “Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of July 31, 2015, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses identified”
3D MakerJet reminds us of Makism 3D, a OTC listed company, that failed to bring to the market a 3D Printer claiming to be reliable, well made and easy to use. It’s hard to say now what the powderless metal 3D Printer might look like, if it ever comes to the market. For now, 3D MakerJet looks like another opaque, overvalued and mysterious OTC company aiming to benefit from the craze around Metal 3D Printing.